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First Acceptance
(OTC:FACO)
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Rating:75Outperform
Price Target:
$7.00
▲(29.15% Upside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by improved financial performance and solid balance-sheet strength, supported by positive cash generation. Valuation is a meaningful positive due to the very low P/E. The main offset is technical risk from overbought momentum signals despite an ongoing uptrend.
Positive Factors
Conservative Leverage
Low debt-to-equity (~0.22) and a conservatively levered balance sheet provide durable financial flexibility for an insurer. This permits absorbing underwriting volatility, funding reserve increases or catastrophe events, supports rate filings and reinsurance purchase options, and lowers financing risk over months.
Negative Factors
Revenue Decline
A multi-period revenue decline limits scale benefits and pricing leverage for a non-standard auto insurer. Shrinking premiums restrict ability to spread fixed distribution and admin costs, reduce investment float growth, and constrain capital available for product expansion or cost absorption over several months.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Leverage
Low debt-to-equity (~0.22) and a conservatively levered balance sheet provide durable financial flexibility for an insurer. This permits absorbing underwriting volatility, funding reserve increases or catastrophe events, supports rate filings and reinsurance purchase options, and lowers financing risk over months.
Read all positive factors
First Acceptance (FACO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$234.25M
Dividend YieldN/A
Average Volume (3M)9.82K
Price to Earnings (P/E)6.0
Beta (1Y)0.26
Revenue Growth-7.70%
EPS Growth58.56%
CountryUS
Employees629
SectorFinancial
Sector Strength70
IndustryInsurance - Property & Casualty
Share Statistics
EPS (TTM)1.02
Shares Outstanding38,150,906
10 Day Avg. Volume7,392
30 Day Avg. Volume9,824
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)0.79
Price to Sales (P/S)0.31
P/FCF Ratio3.41
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
First Acceptance Business Overview & Revenue Model
Company Description
First Acceptance Corporation, together with its subsidiaries, operates as a retailer, servicer, and underwriter of non-standard personal automobile insurance and related products in the United States. It issues non-standard automobile insurance po...
How the Company Makes Money
FACO’s primary source of revenue is insurance operations. It makes money by (1) collecting insurance premiums from policyholders for personal auto insurance coverage and recognizing those premiums as earned over the policy term; and (2) investing ...
First Acceptance Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 482.11M | 506.34M | 559.43M | 487.54M | 302.30M | 285.25M |
| Gross Profit | 203.70M | 200.89M | 40.53M | 33.48M | -15.11M | 2.05M |
| EBITDA | 52.04M | 43.11M | 38.61M | 105.40M | -16.32M | 999.00K |
| Net Income | 37.71M | 30.23M | 26.29M | 73.91M | -17.49M | -1.23M |
Balance Sheet | ||||||
| Total Assets | 748.24M | 725.62M | 680.39M | 570.37M | 355.94M | 322.65M |
| Cash, Cash Equivalents and Short-Term Investments | 54.63M | 181.07M | 173.08M | 302.67M | 162.40M | 180.49M |
| Total Debt | 45.13M | 45.53M | 45.40M | 46.02M | 55.30M | 51.97M |
| Total Liabilities | 533.81M | 525.74M | 510.83M | 428.52M | 55.30M | 51.97M |
| Stockholders Equity | 214.43M | 199.88M | 169.56M | 141.85M | 65.52M | 92.90M |
Cash Flow | ||||||
| Free Cash Flow | 31.58M | 46.57M | 51.79M | 83.82M | -8.10M | -10.46M |
| Operating Cash Flow | 31.98M | 47.14M | 52.12M | 85.16M | -3.89M | -6.60M |
| Investing Cash Flow | -39.23M | -48.48M | -75.53M | -24.53M | -7.22M | 34.48M |
| Financing Cash Flow | -61.00K | -6.28M | -446.00K | 83.00K | -642.00K | -15.30M |
First Acceptance Technical Analysis
Positive
5.42
Price Trends
5.54
Positive
5.26
Positive
4.64
Positive
Market Momentum
0.20
Negative
73.60
Negative
80.88
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FACO, the sentiment is Positive. The current price of 5.42 is below the 20-day moving average (MA) of 5.70, below the 50-day MA of 5.54, and above the 200-day MA of 4.64, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 73.60 is Negative, neither overbought nor oversold. The STOCH value of 80.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FACO.
First Acceptance Risk Analysis
First Acceptance disclosed 20 risk factors in its most recent earnings report. First Acceptance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
First Acceptance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $234.25M | 6.02 | 18.63% | ― | -7.70% | 58.56% | |
74 Outperform | $5.84B | 6.23 | 37.19% | 1.18% | 9.95% | 140.12% | |
74 Outperform | $1.52B | 22.08 | 7.16% | 3.57% | 7.04% | -18.57% | |
72 Outperform | $285.04M | 7.94 | 0.11% | 1.00% | 34.04% | 15.59% | |
71 Outperform | $725.83M | 9.52 | 11.01% | 3.94% | -3.10% | -18.44% | |
71 Outperform | $796.81M | 13.87 | 15.91% | ― | 14.86% | -30.59% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
FACO
First Acceptance
6.14
2.68
77.46%
DGICA
Donegal Group
18.75
2.32
14.15%
KINS
Kingstone Companies
19.69
5.97
43.49%
MCY
Mercury General
105.38
33.25
46.10%
SAFT
Safety Insurance Group
103.35
33.59
48.16%
ROOT
Root
51.45
-36.60
-41.57%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.